The Impact of Neglecting Quarterly Progress Reports in Real Estate Development

In the sphere of estate development, adhering to regulations and meeting legal obligations is paramount for builders and developers. The recent emphasis by the Maharashtra Real Estate Regulatory Authority (MahaRERA) on the importance of submitting Quarterly Progress Reports underscores the severe consequences of neglecting these responsibilities.

Legal Mandate for Quarterly Progress Reports

In accordance with Section 11 of the Real Estate (Regulation and Development) Act, 2016, coupled with Rule 20 of Maharashtra Real Estate (Regulation and Development) (Registration of real estate projects, Registration of real estate agents, rates of interest and disclosures on the website) Rules, 2017, every promoter is obligated to update the details of their registered projects on a quarterly basis.

Consequences of Non-Compliance with MahaRERA

For builders, the ramifications of failing to submit quarterly progress reports to MahaRERA are significant:

1. Immediate Notice: Missing the deadline prompts MahaRERA to issue a notice, providing a 10-day window for compliance.

2. Restrictions and Hearing: Continued non-compliance leads to a hearing, with restricted access to MahaRERA’s services during this period.

3. Public Announcement: MahaRERA publicly announces the builder’s failure to comply, damaging reputation and investor confidence.

4. Cancellation of Registration: Persistent neglect results in MahaRERA having the authority to cancel the project’s registration, halting construction and necessitating a new registration with a substantial ₹50,000 fine.

Importance of Timely Reporting

Timely reporting is crucial for builders to mitigate various issues:

1. Financial Loss: Project cancellation entails significant financial losses for both builders and invested homebuyers.

2. Losing Consumer Confidence: Failing to submit Quarterly Progress Reports erodes consumer trust, impacting not only the builder but the entire real estate industry.

3. Regulatory Consequences: Regulatory penalties and project cancellations can be financially debilitating, even leading to imprisonment for builders or promoters.

4. Delay in Projects: Non-compliance can result in delays in project approvals and sanctions, incurring additional costs and negatively impacting the overall real estate ecosystem.

Guidelines for Updating Project Details

Promoters must use their login IDs for registering projects and pay annual update fees. Upon successful payment, the project update facility becomes active. Updates are necessary in various sections, including document uploads, building details, task/activity updates, project cost, promoter details, common areas and facilities, project professional details, and building-wise completion dates.

Conclusion

MahaRERA's recent warning serves as a stark reminder to builders and developers in Maharashtra. Failing to submit Quarterly Progress Reports, as mandated by the RERA Act, can have disastrous consequences, not only for the specific project but for the entire real estate sector. Project cancellation can lead to significant financial losses, erode consumer trust, result in regulatory penalties, and hinder overall economic development.

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